A Profit-Maximizing Monopsonist Hires Both Men and Women to Do

A profit-maximizing monopsonist hires both men and women to do a certain task. The two sexes are equally good at this task and are regarded as perfect substitutes. Labor supply curves for both sexes are upward sloping. In order to hire M men, the firm would have to pay men a wage of AM, where A is a positive constant. In order to hire F women, the monopsonist would have to pay a wage of BF^c, where B and c are positive constants. Which, if any, of these conditions necessarily implies that the monopsonist pays a lower wage to women than to men?

A) A > B.
B) A <c.
C) c < 1.
D) Bc < A.
E) C > 2.

Correct Answer:

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